Truck Rent-A-Center, Inc., Respondent v. Puritan Farms 2nd, Inc., Appellants

Summary

The New York Court of Appeals held that the liquidated damages provision in the truck lease agreement was enforceable and not an unlawful penalty, affirming the Appellate Division's judgment awarding the lessor half of the remaining rentals. The court reasoned that the stipulated amount bore a reasonable relation to the probable loss and was not grossly disproportionate.